Cameco Corporation (CCO) 2023年年度報告「TSX」.pdf

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1、Nuclear Fuel CycleMining&MillingOnce an orebody is discovered and defined by exploration,there are three common ways to mine uranium,depending on the depth of the orebody and the deposits geogolical characteristics:Open pit mining is used if the ore is near the surface.The ore is usually mined using

2、 drilling and blasting.Underground mining is used if the ore is too deep to make open pit mining economical.Tunnels and shafts provide access to the ore.In situ recovery(ISR)does not require large scale excavation.Instead,holes are drilled into the ore and a solutioni is used to dissolve the uranium

3、.The solution is pumped to the surface where the uranium is recovered.Ore from open pit and underground mines is processed to extract the uranium and package it as a powder typically referred to as uranium concentrates(U308)or yellowcake.The leftover processed rock and other solid waste(tailings)is

4、placed in an engineered tailings facility.RefiningRefining removes impurities from the uranium concentrate and changes its chemical form to uranium trioxide(UO3).ConversionFor light water reactors,the UO3 is converted to uranium hexafluoride(UF6)gas to prepare it for enrichment.For heavy water react

5、ors,like the CANDU reactors,the UO3 is converted into powdered uranium dioxide UO2).EnrichmentUranium is made up of two main isotopes:U-238 and U-235.Only U-235,which makes up 0.7%of natural uranium,is involved in the nuclear fission reaction and most of the worlds reactors require an enriched level

6、 of U-235.The enrichment process increases the concentration of U-235,with most of the existing global reactor fleet requiring between 3%and 5%.However,to allow for extended refueling cycles and for some new and advanced reactor designs,higher levels of enrichment may be required.Enriched gas is the

7、n converted to powdered UO2.Fuel manufacturingNatural or enriched UO2 is pressed into pellets,which are baked at a high temperature.These are packed into zircaloy or stainless steel tubes,sealed and then assembled into fuel bundles that are specific to each reactor design.GenerationNuclear reactors

8、are used to generate electricity.U-235 atoms in the reactor fuel fission,creating heat that generated steam to drive turbines.The fuel bundles in the reactor need tobe replaced as the U-235 atoms are depleted,typically after one or two years,depending on the reactor type.The used-or spent fuel-is st

9、ored or reprocessed.Spent fuel managementThe majority of spent fuel is safely stored at the reactor site.A small amount of spent fuel is reprocessed.The reprocessed fuel is used in some European and Japanese reactors.1234567EXPLORATIONCAMECO MINING+MILLINGBlind River Refining FacilityCameco explores

10、,mines and millsWorlds largest commercial uranium refineryUseable clean energy that powershomes,hospitals and businessesin Saskatchewan,the USA,Australia and KazakhstanCANDUREACTORSENERGY GRIDCONVERSION ENRICHMENTPort HopeGlobal LaserEnrichment(in development)WestinghouseConversion FacilityCanadas o

11、nly uraniumconversion facilityCONVERSION OFENRICHED UF6 into UO2FUEL FABRICATIONLIGHT WATERREACTORSSPENT FUEL STORAGELIGHT WATER REACTORSPort Hope&Cobourg Fuel Manufacturing FacilitiesManufactures reactor components and fuel bundles for CANDU reactorsFUEL FABRICATIONSPENT FUEL STORAGECAMECO INVESTME

12、NTS CONVERSION OFUO to UFCONVERSION OFUO to UO1234567567Managements discussion and analysis February 8,2024 10 MARKET OVERVIEW AND DEVELOPMENTS 17 2023 PERFORMANCE HIGHLIGHTS 22 OUR VISION,VALUES AND STRATEGY 32 OUR ESG PRINCIPLES AND PRACTICES 36 MEASURING OUR RESULTS 38 FINANCIAL RESULTS 69 OPERAT

13、IONS AND PROJECTS 100 MINERAL RESERVES AND RESOURCES 105 ADDITIONAL INFORMATION 106 2023 CONSOLIDATED FINANCIAL STATEMENTS This managements discussion and analysis(MD&A)includes information that will help you understand managements perspective of our audited consolidated financial statements(financi

14、al statements)and notes for the year ended December 31,2023.The information is based on what we knew as of February 7,2024.We encourage you to read our audited consolidated financial statements and notes as you review this MD&A.You can find more information about Cameco,including our financial state

15、ments and our most recent annual information form,on our website at ,on SEDAR+at or on EDGAR at sec.gov.You should also read our annual information form before making an investment decision about our securities.The financial information in this MD&A and in our financial statements and notes is prepa

16、red according to International Financial Reporting Standards(IFRS),unless otherwise indicated.Unless we have specified otherwise,all dollar amounts are in Canadian dollars.Throughout this document,the terms we,us,our,the Company and Cameco mean Cameco Corporation and its subsidiaries,unless otherwis

17、e indicated.2 CAMECO CORPORATION Caution about forward-looking information Our MD&A includes statements and information about our expectations for the future.When we discuss our strategy,plans,future financial and operating performance,or other things that have not yet taken place,we are making stat

18、ements considered to be forward-looking information or forward-looking statements under Canadian and United States(US)securities laws.We refer to them in this MD&A as forward-looking information.Key things to understand about the forward-looking information in this MD&A:It typically includes words a

19、nd phrases about the future,such as:anticipate,believe,estimate,expect,plan,will,intend,goal,target,forecast,project,vision,strategy and outlook(see examples below).It represents our current views and can change significantly.It is based on a number of material assumptions,including those we have li

20、sted on page 5,which may prove to be incorrect.Actual results and events may be significantly different from what we currently expect,due to the risks associated with our business.We list a number of these material risks on page 4.We recommend you also review our most recent annual information form,

21、which includes a discussion of other material risks that could cause actual results to differ significantly from our current expectations.Forward-looking information is designed to help you understand managements current views of our near-and longer-term prospects,and it may not be appropriate for o

22、ther purposes.We will not necessarily update this information unless we are required to by securities laws.Examples of forward-looking information in this MD&A our view that we have the strengths to take advantage of the worlds rising demand for safe,clean,secure,reliable,affordable and carbon-free

23、energy,and our vision to energize a clean-air world that we will continue to focus on delivering our products responsibly and addressing the environmental,social and governance(ESG)risks and opportunities that we believe will make our business sustainable and will build long-term value our expectati

24、ons about when future reactors will come online our expectations about 2024 and future global uranium supply,consumption,contracting,demand,geopolitical issues and the market including the discussion under the heading Market overview and developments our expectations for the future of the nuclear in

25、dustry and the potential for new enrichment technology,including that nuclear power must be a central part of the solution to the worlds shift to a low-carbon climate-resilient economy and that our investment in enrichment technology,if successful,will allow us to participate in the entire nuclear f

26、uel value chain our efforts to participate in the commercialization and deployment of small modular reactors(SMRs)and increase our contributions to global climate change solutions by exploring SMRs and other emerging opportunities within the fuel cycle our expectations about future demand for SMRs o

27、ur views on our ability to self-manage risk the discussion under the heading Our business the discussion under the heading Our strategy our expectations regarding the effect of supply scarcity on our long-term contract portfolio our expectations regarding the operation of,and production levels for,t

28、he Cigar Lake mine and McArthur River/Key Lake operation and the Port Hope UF6 conversion facility,as well as our exploration activities at these and other sites our expectations regarding the future average unit cost of production at McArthur River/Key Lake and at Cigar Lake our expectation regardi

29、ng the timing of filing a new technical report for Cigar Lake our expectations regarding our licences for McArthur River,Key Lake and Crow Butte Kazatomproms planned production levels and timing for JV Inkai the discussion under the heading Our ESG principles and practices including our belief there

30、 is a significant opportunity for us to be part of the solution to combat climate change and that we are well positioned to deliver significant long-term business value our expectations for uranium purchases,sales and deliveries our intentions regarding future dividend payments the discussion of our

31、 expectations relating to our Canada Revenue Agency(CRA)transfer pricing dispute,including our confidence that the courts would reject any attempt by CRA to utilize the same or similar positions for other tax years currently in dispute,our plan to file a notice of objection for 2017 and our belief t

32、hat CRA should return the full amount of cash and security that has been paid or otherwise secured by us our expectations regarding the amount of security we will need to provide to CRA in connection with the tax debts CRA considers us owing for 2017 the discussion of our future plans for Cigar Lake

33、 and McArthur River/Key Lake under the heading 2023 performance highlights our views on our ability to align our production with market opportunities and our contract portfolio our expectation regarding opportunities to improve operational effectiveness and to reduce our impact on the environment,in

34、cluding through the use of digital and automation technologies MANAGEMENTS DISCUSSION AND ANALYSIS 3 the discussion under the heading Outlook for 2024,including expected business resiliency,expectations for 2024 average unit cost of sales,average purchase price per pound,deliveries and production,20

35、24 financial outlook,our revenue,expectations for 2024 cash balances,tax rates,adjusted net earnings and cash flow sensitivity,and our price sensitivity analysis for our uranium segment the discussion under the heading Liquidity and capital resources,including expected liquidity to meet our 2024 obl

36、igations and our expectations regarding how the ratings agencies will consider our investment in Westinghouse in their analysis our expectation that the uranium contract portfolio we have built will continue to provide a solid revenue stream,and our portfolio management strategy,including our invent

37、ory strategy and the extent of our spot market purchases our expectation that our cash balances and operating cash flows will meet our anticipated 2024 capital requirements our expectations for our and Westinghouses future capital expenditures and sources of funds our expectation that in 2024 we wil

38、l be able to comply with all the covenants in our credit agreements our expectation that Westinghouse will continue to comply with the covenants in its credit agreements life of mine operating cost estimates for the Cigar Lake,McArthur River/Key Lake and JV Inkai operations our future plans and expe

39、ctations for uranium properties,advanced uranium projects,and fuel services operating sites,including production levels and suspension of production at certain properties,pace of advancement and expansion capacity,carbon reduction targets and mine life,and that our core growth is expected to come fr

40、om our existing tier-one mining and fuel services assets our expectations related to care and maintenance costs our mineral reserve and resource estimates our decommissioning estimates the discussion of our expectations relating to our acquisition of a 49%interest in Westinghouse Electric Company(We

41、stinghouse),including the acquisition expanding our participation in the nuclear fuel value chain,and providing a platform for further growth,and various factors and drivers for Westinghouses business segment our expectation that the acquisition will enhance our participation in the nuclear fuel cyc

42、le our expectation that the Westinghouse acquisition will be accretive to us and augment the core of our business our expectation of Westinghouse being well positioned to participate in the growing demand profile for nuclear energy our plans to update our physical climate risk assessments,incorporat

43、e these findings into our internal risk management review and developing an adaptation action plan template and our expectations regarding the timing for implementation of these plans our expectations regarding our research and development expenses for 2024 our expectations regarding the timing of t

44、he Canadian Nuclear Safety Commissions review of our preliminary decommissioning cost estimate for the Port Hope conversion facility our expectations regarding which extraction methods we will use in the future our expectation that Westinghouses durable and growing business will allow Westinghouse t

45、o self-fund its approved annual operating budget,maintain its existing capacity to service its annual financial obligations from de-risked cash flows,and pay annual distributions to its owners our 2024 outlook for Westinghouses Adjusted EBITDA,capital expenditures and revenue our expectation that st

46、rategic initiatives,including the development of the AP300 small modular reactor and the eVinci microreactor,will provide new business opportunities for Westinghouse that will make a meaningful contribution to Westinghouses long-term financial performance our expectation for Westinghouse projects ge

47、nerating multi-year revenue streams and EBITDA for Westinghouse our expectation that the timing of cash distributions from Westinghouse will be aligned with the timing of Westinghouses cash flows our expectation that Westinghouses new opportunities will allow Westinghouse to compete for and win new

48、business our expectation that Westinghouses reputation and position will benefit its core business as Eastern European countries seek to develop a reliable fuel supply chain our expectations regarding the growth of Westinghouses Adjusted EBITDA over the next five years our estimates in respect of th

49、e framework for the timing of revenue flows and profitability of contracts under a new build project our expectation with respect to the development of its AP300 small modular reactor and eVinci microreactor our expectation on Westinghouse being well-positioned for future growth our expectation arou

50、nd the refinancing of our senior unsecured debentures,our expected cash flow and our plan to reduce total debt,with a focus on the floating rate term loan our expectations regarding when Global Laser Enrichments technology will be deployed at a commercial scale 4 CAMECO CORPORATION Material risks ac

51、tual sales volumes or market prices for any of our products or services are lower than we expect,or cost of sales is higher than we expect,for any reason,including changes in market prices,loss of market share to a competitor,trade restrictions,geopolitical issues or the impact of a pandemic we are

52、adversely affected by changes in currency exchange rates,interest rates,royalty rates,tax rates,or inflation our production costs are higher than planned,or necessary supplies are not available,or not available on commercially reasonable terms our strategies may change,be unsuccessful or have unanti

53、cipated consequences,or we may not be able to achieve anticipated operational flexibility and efficiency changing views of governments regarding the pursuit of carbon reduction strategies or our view may prove to be inaccurate on the role of nuclear power in pursuit of those strategies our estimates

54、 and forecasts prove to be inaccurate,including production,purchases,deliveries,cash flow,revenue,costs,decommissioning,reclamation expenses,or receipt of future dividends from JV Inkai that we may not realize the expected benefits from the Westinghouse acquisition Westinghouse fails to generate suf

55、ficient cash flow to fund its approved annual operating budget or make quarterly distributions to the partners we are unable to enforce our legal rights under our existing agreements,permits or licences we are subject to litigation or arbitration that has an adverse outcome that the courts may accep

56、t the same,similar or different positions and arguments advanced by CRA to reach decisions that are adverse to us for other tax years the possibility of a materially different outcome in disputes with CRA for other tax years that CRA does not agree that the court rulings for the years that have been

57、 resolved in Camecos favour should apply to subsequent tax years that CRA will not return all or substantially all of the cash and security that has been paid or otherwise secured in a timely manner,or at all there are defects in,or challenges to,title to our properties our mineral reserve and resou

58、rce estimates are not reliable,or there are unexpected or challenging geological,hydrological or mining conditions we are affected by environmental,safety and regulatory risks,including workforce health and safety or increased regulatory burdens or delays resulting from a pandemic or other causes we

59、 are adversely affected by subsurface contamination from current or legacy operations necessary permits or approvals from government authorities cannot be obtained or maintained we are affected by political risks,including any potential future unrest in Kazakhstan operations are disrupted due to pro

60、blems with our own or our suppliers or customers facilities,the unavailability of reagents,equipment,operating parts and supplies critical to production,equipment failure,lack of tailings capacity,labour shortages,labour relations issues,strikes or lockouts,underground floods,cave-ins,ground movemen

61、ts,tailings dam failures,transportation disruptions or accidents,aging infrastructure or other development and operating risks we are affected by terrorism,sabotage,blockades,civil unrest,social or political activism,outbreak of illness(such as a pandemic),accident or a deterioration in political su

62、pport for,or demand for,nuclear energy a major accident at a nuclear power plant we are impacted by changes in the regulation or public perception of the safety of nuclear power plants,which adversely affect the construction of new plants,the relicensing of existing plants and the demand for uranium

63、 government laws,regulations,policies or decisions that adversely affect us,including tax and trade laws and sanctions on nuclear fuel imports our uranium suppliers or purchasers fail to fulfil their commitments our McArthur River development,mining or production plans are delayed or do not succeed

64、for any reason our Cigar Lake development,mining or production plans are delayed or do not succeed for any reason our production plans for our Port Hope UF6 conversion facility do not succeed for any reason the McClean Lakes mill production plan is delayed or does not succeed for any reason water qu

65、ality and environmental concerns could result in a potential deferral of production and additional capital and operating expenses required for the Cigar Lake and McArthur River/Key Lake operations JV Inkais development,mining or production plans are delayed or do not succeed for any reason,or JV Ink

66、ai is unable to transport and deliver its production we may be unsuccessful in pursuing innovation or implementing advanced technologies,including the risk that the commercialization and deployment of SMRs or new enrichment technology may incur unanticipated delays or expenses,or ultimately prove to

67、 be unsuccessful our expectations relating to care and maintenance costs prove to be inaccurate the risk that we may not be able to refinance our debenture on terms that are as favourable as we expect,or that we may not realize our expected cash flow,or meet our expectations in reducing total debt t

68、he risk that we may become unable to pay future dividends at the expected rate we are affected by natural phenomena,including inclement weather,fire,flood and earthquakes the risks that generally apply to all our operations and advanced uranium projects that are discussed under the heading Managing

69、the risks beginning on page 70 MANAGEMENTS DISCUSSION AND ANALYSIS 5 the risks relating to our tier-one uranium operations discussed under the heading McArthur River mine/Key Lake mill Managing Our Risks beginning on page 75,under the heading Cigar Lake Managing Our Risks beginning on page 79,and un

70、der the heading Inkai Managing Our Risks beginning on page 83 unexpected changes in uranium supply,demand,long-term contracting,and prices changes in consumer demand for nuclear power and uranium as a result of changing societal views and objectives regarding nuclear power,electrification and decarb

71、onization the risk that our views regarding nuclear power,its growth profile,and benefits may prove to be incorrect the risk that we and Westinghouse may not be able to meet sales commitments for any reason the risk that Westinghouse may not achieve the expected growth in its business the risk to We

72、stinghouses business associated with potential production disruptions,including those related to global supply chain disruptions,global economic uncertainty,political volatility,labour relations issues,and operating risks the risk that Westinghouse may not be able to implement its business objective

73、s in a manner consistent with its or our environmental,social,governance and other values the risk that Westinghouses strategies may change,be unsuccessful,or have unanticipated consequences the risk that Westinghouse may be unsuccessful in respect of its new business the risk that Westinghouse may

74、be delayed in announcing its future financial results the risk that Westinghouse may fail to comply with nuclear license and quality assurance requirements at its facilities the risk that Westinghouse may lose protections against liability for nuclear damage,including discontinuation of global nucle

75、ar liability regimes and indemnities the risk that increased trade barriers may adversely impact Westinghouses business the risk that Westinghouse may default under its credit facilities,impacting adversely Westinghouses ability to fund its ongoing operations and to make distributions the risk that

76、liabilities at Westinghouse may exceed our estimates and the discovery of unknown or undisclosed liabilities the risk that occupational health and safety issues may arise at Westinghouses operations the risk that there may be disputes between us and Brookfield regarding our strategic partnership the

77、 risk that we may default under the governance agreement with Brookfield,including us losing some or all of our interest in Westinghouse Material assumptions our expectations regarding sales and purchase volumes and prices for uranium and fuel services,cost of sales,trade restrictions,inflation and

78、that counterparties to our sales and purchase agreements will honour their commitments our expectations for the nuclear industry,including its growth profile,market conditions,geopolitical issues and the demand for and supply of uranium the continuing pursuit of carbon reduction strategies by govern

79、ments and the role of nuclear in the pursuit of those strategies the assumptions discussed under the heading 2024 Financial Outlook our expectations regarding spot prices and realized prices for uranium,and other factors discussed under the heading Price sensitivity analysis:uranium segment Westingh

80、ouses ability to generate cash flow and fund its approved annual operating budget and make quarterly distributions to the partners our ability to compete for additional business opportunities so as to generate additional revenue for us as a result of the Westinghouse acquisition market conditions an

81、d other factors upon which we based the Westinghouse acquisition and our related forecasts will be as expected the success of our plans and strategies relating to the Westinghouse acquisition that the construction of new nuclear power plants and the relicensing of existing nuclear power plants will

82、not be more adversely affected than expected by changes in regulation or in the public perception of the safety of nuclear power plants our ability to continue to supply our products and services in the expected quantities and at the expected times our expected production levels for Cigar Lake,McArt

83、hur River/Key Lake,JV Inkai and our fuel services operating sites our cost expectations,including production costs,operating costs,and capital costs our expectations regarding tax payments,tax rates,royalty rates,currency exchange rates and interest rates our entitlement to and ability to receive ex

84、pected refunds and payments from CRA in our dispute with CRA,that courts will reach consistent decisions for other tax years that are based upon similar positions and arguments that CRA will not successfully advance different positions and arguments that may lead to different outcomes for other tax

85、years our expectation that we will recover all or substantially all of the amounts paid or secured in respect of the CRA dispute to date our decommissioning and reclamation estimates,including the assumptions upon which they are based,are reliable 6 CAMECO CORPORATION our mineral reserve and resourc

86、e estimates,and theassumptions upon which they are based,are reliableour understanding of the geological,hydrological and otherconditions at our uranium propertiesour Cigar Lake and McArthur River development,mining andproduction plans succeedour Key Lake mill production plan succeedsthe McClean Lak

87、e mill is able to process Cigar Lake ore asexpectedour production plans for our Port Hope UF6 conversionfacility succeedJV Inkais development,mining and production planssucceed,and that JV Inkai will be able to transport anddeliver its productionthe ability of JV Inkai to pay dividendsthat care and

88、maintenance costs will be as expectedour and our contractors ability to comply with current andfuture environmental,safety and other regulatoryrequirements,and to obtain and maintain required regulatoryapprovalsthat we will be successful in our efforts to renew ouroperating license for Crow Buttetha

89、t we will be able to refinance our senior unsecureddebentures,and assumptions regarding our expected cashflow and our ability to reduce total debtour operations are not significantly disrupted as a result ofpolitical instability,nationalization,terrorism,sabotage,blockades,civil unrest,breakdown,nat

90、ural disasters,outbreak of illness(such as a pandemic),governmental orpolitical actions,litigation or arbitration proceedings,theunavailability of reagents,equipment,operating parts andsupplies critical to production,labour shortages,labourrelations issues,strikes or lockouts,underground floods,cave

91、-ins,ground movements,tailings dam failure,lack oftailings capacity,transportation disruptions or accidents,aging infrastructure or other development or operating risksthat no major accident at a nuclear power plant will occurnuclear power and uranium demand,supply,consumption,long-term contracting,

92、growth in the demand for and globalpublic acceptance of nuclear energy,and pricesWestinghouses production,purchases,sales,deliveries,and coststhe assumptions and discussion set out under the headingWestinghouse Electric Company Future Prospectsthe market conditions and other factors upon which we ha

93、vebased Westinghouses future plans and forecastsWestinghouses ability to mitigate adverse consequences ofdelays in production and constructionthe success of Westinghouses plans and strategiesthe absence of new and adverse government regulations,policies or decisionsthat there will not be any signifi

94、cant adverse consequencesto Westinghouses business resulting from businessdisruptions,including those relating to supply disruptions,economic or political uncertainty and volatility,labour relationissues,and operating risksWestinghouses ability to announce future financial resultswhen expectedWestin

95、ghouse will comply with the covenants in its creditagreementsWestinghouse will comply with nuclear license and qualityassurance requirements at its facilitiesWestinghouse maintaining protections against liability fornuclear damage,including continuation of global nuclearliability regimes and indemni

96、tiesthat known and unknown liabilities at Westinghouse will notmaterially exceed our estimatesthe absence of disputes between us and Brookfieldregarding our strategic partnership,and that we do notdefault under the governance agreement with BrookfieldOur businessOur vision is to energize a clean-air

97、 world.We have a 35-year proven track record of providing secure and reliable nuclear fuel supplies to a global customer base to generate safe,secure,and affordable baseload carbon-free energy.Nuclear energy plants around the world use our uranium and fuel services to generate one of the cleanest so

98、urces of electricity available today.Our operations span the nuclear fuel cycle from exploration to fuel services,which include uranium production,refining,UO2 and UF6 conversion services and CANDU fuel manufacturing for heavy water reactors.We sell uranium and fuel services products to nuclear util

99、ities in 15 countries.In 2023,we further enhanced our ability to meet our customers growing demand for reliable and secure nuclear fuel supplies,services and technologies by investing in Westinghouse Electric Company(Westinghouse).Westinghouses assets are expected to augment the core of our business

100、,providing fuel fabrication for light water reactors;reactor maintenance and other services;the design,engineering and support for the development of new reactors;and nuclear sustainability services.We have also made an investment in a third-generation enrichment technology,that if successful,we exp

101、ect will allow us to participate in the entire nuclear fuel value chain.8 CAMECO CORPORATIONURANIUMOperationsOur uranium production capacity is among the worlds largest.In 2023,as we continued to ramp-up to our tier-one production run rate,we accounted for 16%of world production,with total sales com

102、mitments of over 205 million pounds of U3O8.We have controlling ownership of the worlds largest high-grade reserves.Our tier-one assets are licensed,permitted,long-lived,and are proven reliable and have expansion capacity.These tier-one assets are backed up by idle tier-two assets and what we think

103、is the best exploration portfolio that leverages existing infrastructure.*operations noted in grey are currently in care and maintenance.Advanced Uranium ProjectsWe use a stage gate process to evaluate our uranium projects and will advance them at a pace aligned with market opportunities,in order to

104、 respond when the market signals a need for more uranium.Uranium Exploration(grey shaded)Our exploration program is directed at replacing mineral reserves as they are depleted by our production.Our program is focused on Canada,and we have direct interests in land covering many of the most prospectiv

105、e exploration areas of the Athabasca Basin in northern Saskatchewan.FUEL SERVICESWe are an integrated uranium fuel supplier,offering refining,conversion and fuel manufacturing services.We have about 21%of world primary conversion capacity,with total sales commitments to supply over 75 million kilogr

106、ams of UF6.AdvantagesWith extraordinary assets,a proven operating track record,long-term contract portfolio,strong ESG commitment,employee expertise,comprehensive industry knowledge,and a strong balance sheet,the company is making investments that it expects will create a platform for strategic grow

107、th.We are confident in our ability to increase long-term growth by positioning the company as one of the global leaders in supporting the clean energy transition.And we are doing so at a time when the worlds prioritization of decarbonization and energy security is driving growth in demand and when g

108、eopolitics are creating concerns about the origin and security of supplies across the nuclear fuel cycle.MANAGEMENTS DISCUSSION AND ANALYSIS 9WESTINGHOUSE In November 2023,we completed the acquisition of a 49%interest in Westinghouse,a global provider of mission-critical and specialized technologies

109、,products and services for light-water reactors across most phases of the nuclear power sector,in a strategic partnership with Brookfield Renewable.We account for our proportionate interest in Westinghouse on an equity basis.OTHER FUEL CYCLE INVESTMENTSGLOBAL LASER ENRICHMENT LLC(GLE)We have a 49%in

110、terest in GLE which is testing a third-generation enrichment technology that,if successful,will use lasers to commercially enrich uranium.GLE is the exclusive licensee of the proprietary SILEX laser enrichment technology that is in the development phase.10 CAMECO CORPORATION Market overview and deve

111、lopments A market in transition In 2023,geopolitical uncertainty and heightened concerns about energy security and climate change continued to improve the demand and supply fundamentals for the nuclear power industry and the fuel cycle that is required to support it.Increasingly,countries and compan

112、ies around the globe are recognizing the critical role nuclear power must play in providing clean and secure baseload power.This growing support has led to a rise in demand as reactors are being saved from earlier retirement,10-and 20-year life extensions are being sought and approved for existing r

113、eactor fleets in several countries,and numerous commitments and plans are being made for the construction of new nuclear generating capacity.In addition,there is increasing interest in small modular reactors(SMR),including smaller versions of existing technology and advanced technology designs,which

114、 are expected to add to demand in the decades to come,with several projects already underway.While demand continues to increase,future supply is not keeping pace.Heightened supply risk caused by growing geopolitical uncertainty,shrinking secondary supplies and a lack of investment in new capacity ov

115、er the past decade has motivated utilities to evaluate their near-,mid-and long-term nuclear fuel supply chains.The uncertainty about where nuclear fuel supplies will come from to satisfy growing demand has led to increased long-term contracting activity and in 2023,about 160 million pounds of urani

116、um was placed under long-term contracts by utilities.While it is the highest annual volume contracted since 2012,it remains below replacement rate and includes our contract with Ukraine,which alone accounted for about 30 million of those pounds.Prices across the nuclear fuel cycle continued to rise

117、in 2023,with spot enrichment prices up 38%,conversion prices continuing to achieve record highs,uranium spot prices more than doubling from around$48(US)per pound at the end of 2022 to$100(US)per pound at the end of January 2024,after peaking at$106(US)per pound earlier in the month,and the long-ter

118、m price for uranium increasing about 38%over the same period.We expect there will be continued competition to secure uranium,conversion services and enrichment services under long-term contracts with proven producers and suppliers who have a diversified portfolio of assets in geopolitically attracti

119、ve jurisdictions,with strong environmental,social and governance(ESG)performance,and on terms that help ensure a reliable supply is available to satisfy demand.DURABLE DEMAND GROWTH The benefits of nuclear energy have come clearly into focus,supporting a level of durability that,we believe,has not b

120、een previously seen.The durability is being driven not only by accountability for achieving the net-zero carbon targets set by countries and companies around the world,but also by a geopolitical realignment in energy markets that is causing countries to reexamine how they plan to address their energ

121、y needs.Net-zero carbon targets are turning global attention to a triple challenge.First,about one-third of the global population must be lifted out of energy poverty by improving access to clean and reliable baseload electricity.Second,approximately 80%of the current global electricity grids that r

122、un on carbon-emitting sources of thermal power must be replaced with a clean,reliable alternative.And finally,global power grids must grow by electrifying industries,such as private and commercial transportation,and home and industrial heating,which today are largely powered with carbon-emitting sou

123、rces of thermal energy.Additionally,geopolitical uncertainty has deepened concerns about energy security,highlighting the role of energy policy in balancing three main objectives:providing a clean emissions profile;providing a reliable and secure baseload profile;and providing an affordable,levelize

124、d cost profile.There is increasing recognition that nuclear power meets these objectives and has a key role to play in achieving decarbonization and energy security goals.The growth in demand is not just long-term and in the form of new builds,but medium-term in the form of reactor life extensions,a

125、nd near-term with early reactor retirement plans being deferred or cancelled and new markets continuing to emerge.And,we are seeing even more long-term momentum building with the development of SMRs,where the use case extends beyond just power generation and numerous companies and countries are purs

126、uing projects.MANAGEMENTS DISCUSSION AND ANALYSIS 11 Demand and energy policy highlights In September,the World Nuclear Association released its biennial Global Nuclear Fuel Report which provides scenarios fordemand and supply availability across the fuel supply chain through 2040.This included a ro

127、bust demand outlook showingglobal nuclear generating capacity increasing to 686 GWe by 2040 in the Reference Scenario,an average annual growthrate of 3.6%,compared to 2.6%in the 2021 report.This improvement was driven by improved government support,lifeextensions,new builds and importantly,that star

128、ting in the 2030s,the deployment of SMRs is forecasted to contribute tocapacity growth.Additional key themes include assumed reductions to secondary supply and decreased availability ofmobile inventories,along with the need for a growing volume of future uranium supply requiring higher incentive pri

129、cing tobalance the market after 2030.At the 28th annual Conference of Parties(COP28),the 2023 United Nations Climate Change Conference held in the UnitedArab Emirates,22 countries(now 28)launched a declaration to triple nuclear energy capacity by 2050.For the first time atthe conference,nuclear ener

130、gy was recognized alongside other low-emissions technologies for the key role it must play inreaching global net-zero greenhouse gas emissions by 2050.In addition,the inaugural global stocktake was introduced atCOP28,a process where countries and stakeholders can provide an update every five years t

131、o track the worlds progresstoward the Paris Agreement targets.In 2023,the initiative concluded that more action is required,as emissions continue torise and put 2030 targets at risk,reinforcing that in order to achieve net zero by 2050,the world needs“absolute economy-wide emission reduction targets

132、”,which were estimated at a cost of“trillions of dollars”.China Nuclear Energy Association published the“China Nuclear Energy Development Report 2023”in April,whichhighlighted Chinas continuing growth.According to the report,the country is expected to lead the world in installed nuclearcapacity with

133、 110 GWe expected by 2030,rising to 150 GWe expected by 2035,and plans to build over 90%of their majornuclear power reactors domestically.Additionally,a proposal drafted by 15 Chinese national policy advisors was submittedto the government advocating for the development of new nuclear power plants a

134、t inland sites,which are now beingconsidered following the end of a post-Fukushima moratorium on proposed inland nuclear power plants.In Japan,Takahama unit 2 restarted in September,becoming the countrys 12th reactor to restart since Fukushima.Onagawa unit 2 and Shimane unit 2 are expected to restar

135、t in 2024.In November,the Nuclear Regulation Authorityapproved 20-year life extensions(beyond 40 years)for Sendai units 1 and 2;additionally,Takahama units 3 and 4 areexpected to receive similar life extensions,pending generator work in 2026 and 2027.In addition,Japan enacted a bill inMay allowing n

136、uclear reactors to operate beyond the 60-year limit.In South Korea,Korea Hydro and Nuclear Power(KHNP)announced in September that they successfully completed fuelloading at Shin Hanul unit 2,a new 1,400 MWe APR-1400 pressurized water reactor(PWR)unit.This followed anannouncement from the Ministry of

137、 Industry and Energy that Shin Hanul units 3 and 4 would be completed by the end of2024.Additionally,to help achieve the plans set out in their 10th Basic Plan for Electricity Supply and Demand 2030,whichtargets more than 30%of its power supply to come from nuclear,the Ministry confirmed a review of

138、 the need for newnuclear power plants was underway.In India,the first domestically designed 700 MWe pressurized heavy water reactor,Kakrapar unit 3,reached full operatingcapacity in August.Three more units of the same design are expected to come online in the next few years.The country istargeting a

139、n expansion of nuclear generating capacity to 22.5 GWe by 2031.In February,the European Nuclear Alliance was launched.Led by France,the initiative commits 11 European countries tocooperate across the nuclear fuel supply chain,and to promote new nuclear generation projects and technologies,includingt

140、he advancement of SMRs.Throughout 2023,the alliance expanded and now includes a commitment from 16 Europeancountries that will prepare a roadmap to develop an integrated European nuclear industry and target 150 GWe of nuclearpower by 2050.In France,plans were advanced to relaunch the countrys reacto

141、r construction program:the government committed to lifeextensions with a proposed“industrial build”program that initially includes six new European Pressurized Reactors(EPR),as well as eight additional EPRs in the future.lectricit de France filed an application to build the first pair of 1,650 MWeEP

142、Rs with construction scheduled to begin in 2028.In January 2024,the United Kingdom(UK)announced that they are seeking to quadruple their nuclear power output by2050.Under the“Civil Nuclear Roadmap”,the UK will invest into developing new advanced nuclear fuel,new regulations,and a new nuclear reactor

143、.12 CAMECO CORPORATION In June,Swedens parliament adopted a new energy target,changing its focus to 100%fossil-free electricity as opposed to the previously stated focus of 100%renewable.In August,the government announced a target to further expand the role of nuclear power and in November,announced

144、 its intention to build up to 2,500 MWe of new nuclear power capacity by 2035,and up to 10 new reactors by 2045,backed by an offer of loan guarantees.In Belgium,the government and nuclear operator ENGIE reached an agreement following prolonged negotiations to extend the lifespans of the Doel unit 4

145、and Tihange unit 3 reactors by 10 years,with each now expected to operate until 2035.In Bulgaria,the government issued its 30-year energy strategy to 2053,which envisions the construction of four new nuclear reactor units.In December,parliament approved a government proposal to inject up to 1.5 bill

146、ion levs($838 million(US)into the state-owned Kozloduy Nuclear Power Plant to fund the planned construction of the first of two proposed reactors using Westinghouses AP1000 technology.In Poland,the government adopted a resolution committing to finance the countrys first nuclear power plant.The funds

147、 will go to Polish utility Polskie Elektrownie Jadrowe,which signed a contract with Westinghouse for multiple AP1000 reactors in February of 2023.In the US,Vogtle unit 3 entered commercial service on July 31,after becoming the first Westinghouse AP1000 reactor in the US to successfully connect to th

148、e electrical grid.Vogtle unit 4 is expected to begin operating in the second quarter of 2024.Throughout 2023,many US states expressed local support for nuclear:Ohio,Virginia,Kentucky,and Tennessee all began creating state-level advisory authorities to promote,research and develop nuclear power techn

149、ologies,and Michigan formed a new Nuclear Caucus to support the reopening of the Palisades nuclear power plant,and also approved extending operations at the Monticello nuclear power plant through 2040.In Canada,provincial support for nuclear increased in 2023.New Brunswick Power signed a three-year

150、contract with Ontario Power Generation(OPG)to enhance the operational performance of the Point Lepreau nuclear power plant.In Ontario,the Minister of Energy announced support to advance the long-term planning required to explore nuclear expansion options for Bruce Power,outlining the need for nearly

151、 18 GWe in new nuclear capacity to help the province reach its electrification and net-zero goals.Additionally,in Saskatchewan,Crown Investments Corporation provided around$479,000 to help local firms build small,advanced,and micro reactors supply chain capacity,while the Alberta government announce

152、d plans to invest around$7 million to study SMRs.In January 2024,OPG announced plans to proceed with the refurbishment of the Pickering Nuclear Generating Stations“B”units(units 5,6,7 and 8).Once the project is completed in the mid-2030s,Pickering would produce a total of 2 GWe of electricity,to hel

153、p meet increasing electricity demand and fuel the provinces economic growth.According to the International Atomic Energy Agency(IAEA),globally there are currently 438 operable reactors and 58 reactors under construction.Several nations are appreciating the clean energy and energy security benefits o

154、f nuclear power and have reaffirmed their commitment with plans underway to support existing reactor units and review policies to encourage more nuclear generation.Several other non-nuclear countries have emerged as candidates for new nuclear capacity.In the EU,specific nuclear energy projects have

155、been identified for inclusion under its sustainable financing taxonomy and are therefore eligible for access to low-cost financing.In Canada,the government revised the Canada Green Bond Framework to include nuclear energy projects.In some countries where phase-out policies have been in place,policy

156、reversals and decisions have been made to temporarily keep reactors running,with public opinion polls showing increasing support.With a number of reactor construction projects recently approved and many more planned,demand for uranium continues to improve.There is growing recognition of the role nuc

157、lear must play in providing safe,affordable,carbon-free baseload electricity to achieve a low-carbon economy,while being a reliable energy source that helps countries move away from Russian energy supply.MANAGEMENTS DISCUSSION AND ANALYSIS 13 SUPPLY UNCERTAINTY Geopolitical uncertainty remained the

158、most notable factor impacting security of supply in 2023.Driven by the Russian invasion of Ukraine,and more recently,the coup dtat in Niger,many governments and utilities are re-examining supply chains and procurement strategies that rely on nuclear fuel supplies from these jurisdictions.In addition

159、,sanctions on Russia and Niger,government restrictions,and restrictions on and cancellations of some cargo insurance coverages continue to create transportation and supply chain risks for nuclear fuel supplies coming out of Central Asia.There are also transportation risks to material being shipped f

160、rom Australia to Europe as a result of the conflict in the Middle East.Despite the recent increase in market prices,the deepening geopolitical uncertainty and years of underinvestment in new uranium and fuel cycle service capacities has shifted risk from producers to utilities.Supply and trade polic

161、y highlights Sprott Physical Uranium Trust(SPUT)purchased about 4 million pounds U3O8 in 2023,bringing total purchases since inception to over 45 million pounds U3O8 and increasing the total net asset value to around$7 billion(US).Volatility in equity markets has impacted SPUTs valuation(discount or

162、 premium to its net asset value)and therefore its ability to raise funds to purchase uranium.In June,Kazatomprom(KAP)announced plans to start production at a new uranium deposit,Inkai 3(100%owned by KAP).KAP expects approval of a Subsoil Use Agreement(SSUA)to produce 10.4 million pounds U3O8 annuall

163、y for 25 years from Inkai 3s uranium resources of about 216 million pounds U3O8.2310853322110123456789 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25ChinaAsiaIndiaAfrica&Middle EastRussiaEastern EuropeAmericasUKUSEuropean UnionNumber of reactorsSource:IAEACURRENTLY UNDER CONSTRUCTION451447443439439

164、4380100200300400201820192020202120222023Number of reactorsSource:IAEAWORLD OPERABLE REACTOR COUNT 14 CAMECO CORPORATION In September,KAP had restated its plan to increase production in 2024 to 90%of SSUAs and announced a ramp up to 100%of SSUAs in 2025,though the company also warned that geopolitica

165、l uncertainty,global supply chain issues,and inflationary pressure could create challenges.On January 12,2024,KAP announced that it had faced challenges in completing the development required to achieve the planned 2024 production increase,and that it expected to lower its 2024 uranium production gu

166、idance due to limited availability of sulfuric acid and delays in the construction and development of new assets,including Budenovskoye 6 and 7.On February 1,2024,KAP rescinded its 2024 target due to the shortage of sulfuric acid and construction delays in 2023,and they now plan to remain about 20%b

167、elow SSUAs,expecting to produce between 55 million and 59 million pounds U3O8 in 2024(previously 65 million to 66 million pounds U3O8).KAP also warned that if the acid,supply chain and construction issues persist throughout 2024,the companys 2025 plan to increase production to 100%of SSUAs(79 millio

168、n to 82 million pounds U3O8)may also be affected.In April,five of the G7 countries(Canada,France,Japan,UK,and US),entered into a civil nuclear fuel security agreement that attempts to reduce Russias influence in the global nuclear fuel supply chain.In December,Urenco announced its decision to expand

169、 enrichment capacity at their facility in Almelo,Netherlands,increasing capacity by 15%or approximately 750,000 separative work units(SWU),by 2027.This followed a prior announcement of plans to expand enrichment capacity at its Urenco USA site,increasing capacity there by 15%or approximately 700,000

170、 SWU,by 2025.In October,Orano announced a planned enrichment capacity extension project at Georges Besse 2.The project,forecasted to cost 1.7 billion,seeks to increase capacity by over 30%or approximately 2.5 million SWU,beginning in 2028.In July,ConverDyn announced the restart of Honeywells Metropo

171、lis uranium conversion facility.The restart plan had been delayed by a safety equipment failure in June,resulting in a special inspection by the US Nuclear Regulatory Commission.The facility restarted production in July 2023.In July,a coup dtat in Niger resulted in a group of military officers remov

172、ing President Mohamed Bazoum and seizing power.All exports of uranium and gold to France were suspended and in September,Orano stated that it had halted uranium processing operations at the companys majority-owned SOMAIR(Arlit)project in Niger due to logistical complications caused by international

173、sanctions.This resulted in 2023 production dropping to 3.9 million pounds U3O8,compared to around 5.2 million pounds U3O8 in 2022.In December,the US House of Representatives passed the Prohibiting Russian Uranium Impacts Act.The act proposes to prohibit the import of Russian low-enriched uranium(LEU

174、)into the US,but includes waivers that allow the import of LEU from Russia if the US Energy Secretary determines no alternative source can be procured,or if the shipments are of national interest.The waivers would gradually reduce and eliminate Russian uranium imports by 2028.The bill is awaiting fu

175、rther action after it was blocked by the US Senate on grounds unrelated to the bill itself.Separately,the US Senate Energy and Natural Resources Committee passed the Nuclear Fuel Security Act of 2023,which directs the Department of Energy to create a“Nuclear Fuel Security Program”and strengthen the

176、US nuclear fuel supply chain,including new LEU and high-assay low-enriched uranium(HALEU)capacity,though no new funding has yet been appropriated.Finally,a Supplemental Funding Bill is progressing through Congress and includes roughly$111 billion(US)for national security measures,including a provisi

177、on for$2.72 billion(US)to be allocated to a new“American Energy Independence Fund”,which would acquire non-Russian LEU and HALEU,subject to the ban on Russian imports becoming law.Long-term contracting creates full-cycle value for proven productive assets Like other commodities,the demand for uraniu

178、m is cyclical.However,unlike other commodities,uranium is not traded in meaningful quantities on a commodity exchange.The uranium market is principally based on bilaterally negotiated long-term contracts covering the annual run-rate requirements of nuclear power plants,with a small spot market to se

179、rve discretionary demand.History demonstrates that in general,when prices are rising and high,uranium is perceived as scarce,and more contracting activity takes place with proven and reliable suppliers.The higher demand discovered during this contracting cycle drives investment in higher-cost source

180、s of production,which due to lengthy development timelines,tend to miss the contracting cycle and ramp up after demand has already been won by proven producers.When prices are declining and low,there is no perceived urgency to contract,and contracting activity and investment in new supply dramatical

181、ly decreases.After years of low prices,and a lack of investment in supply,and as the uncommitted material available in the spot market begins to thin,security-of-supply tends to overtake price concerns.Utilities typically re-enter the long-term contracting market to ensure they have a reliable futur

182、e supply of uranium to run their reactors.MANAGEMENTS DISCUSSION AND ANALYSIS 15 UxC reports that over the last five years approximately 510 million pounds U3O8 equivalent have been locked-up in the long-term market,while approximately 780 million pounds U3O8 equivalent have been consumed in reactor

183、s.We remain confident that utilities have a growing gap to fill.We believe the current backlog of long-term contracting presents a substantial opportunity for proven and reliable suppliers with tier-one productive capacity and a record of honoring supply commitments.As a low-cost producer,we manage

184、our operations to increase value throughout these price cycles.In our industry,customers do not come to the market right before they need to load nuclear fuel into their reactors.To operate a reactor that could run for more than 60 years,natural uranium and the downstream services have to be purchas

185、ed years in advance,allowing time for a number of processing steps before a finished fuel bundle arrives at the power plant.At present,we believe there is a significant amount of uranium that needs to be contracted to keep reactors running into the next decade.UxC estimates that cumulative uncovered

186、 requirements are about 2.2 billion pounds to the end of 2040.With the lack of investment over the past decade,there is growing uncertainty about where uranium will come from to satisfy growing demand,and utilities are becoming increasingly concerned about the availability of material to meet their

187、long-term needs.In addition,secondary supplies have diminished,and the material available in the spot market has thinned as producers and financial funds continue to purchase material.Furthermore,geopolitical uncertainty is causing some utilities to seek nuclear fuel suppliers whose values are align

188、ed with their own or whose origin of supply better protects them from potential interruptions,including from transportation challenges or the possible imposition of formal sanctions.$0.00$20.00$40.00$60.00$80.00$100.00$120.00050100150200250300200420052006200720082009201020112012201320142015201620172

189、01820192020202120222023Price in US$/lb U3O8Volume in million lbs U3O8Source:UxC estimatesURANIUM CONTRACTING VOLUMES AND PRICE HISTORY Spot marketLong-term marketAverage Spot Price050100150200250202320242025202620272028202920302031203220332034203520362037203820392040million lbs U3O8Source:UxC estima

190、tes-December 31,2023UTILITY UNCOVERED REQUIREMENTS(2023-2040)US UtilitiesNon-US Utilities 16 CAMECO CORPORATION We will continue to take the actions we believe are necessary to position the company for long-term success.Therefore,we will continue to align our production decisions with our customers

191、needs under our contract portfolio.We will undertake contracting activity which is intended to ensure we have adequate protection while maintaining exposure to the benefits that come from having uncommitted,low-cost supply to place into a strengthening market.MANAGEMENTS DISCUSSION AND ANALYSIS 17 2

192、023 performance highlights It was another positive year for the nuclear energy industry.Demand for nuclear power,including support for existing reactors,continues to grow,catalyzed by the increasing recognition by policy makers and major industries that nuclear energy must play an important role in

193、achieving the objectives of providing clean,secure,reliable and affordable energy.We recently announced our commitment to the Net Zero Nuclear initiative,which is calling for collaboration among government,industry leaders and civil society to triple global nuclear capacity to achieve carbon neutral

194、ity by 2050.We believe nuclear energy is back in durable growth mode,and we too are back in durable growth mode.This growth will be sought in the same manner as we approach all aspects of our business;strategic,deliberate,disciplined and responsible and with a focus on generating full-cycle value.In

195、 our uranium segment,our portfolio of long-term contracts totals approximately 205 million pounds representing only about 20%of our current reserve and resource base,providing us with plenty of exposure to improving demand from our customers as they look to secure their long-term needs.We continue t

196、o have a large and growing pipeline of uranium business under discussion.Our focus continues to be on obtaining market-related pricing mechanisms,while also providing adequate downside protection.We continue to be strategically patient in our discussions to maximize value in our contract portfolio a

197、nd to maintain exposure to higher prices with unencumbered future productive capacity.In addition,with strong demand in the UF6 conversion market,we were successful in adding new long-term contracts that bring our total contracted volumes to over 75 million kgU of UF6 that will underpin that operati

198、on for years to come.At McArthur River/Key Lake,we produced 13.5 million pounds(100%basis)of packaged uranium concentrate(14.8 million pounds at the mine,13.5 million pounds of which were packaged at the mill),slightly below our most recent estimate of 14 million pounds(100%basis).At Cigar Lake,we p

199、roduced 15.1 million pounds(100%basis)of packaged uranium,which is in line with our most recent estimate of up to 16.3 million pounds(100%basis).Any pounds we did not produce in 2023 remain available to us and,with increasing supply pressures,have potentially become more valuable when delivered in t

200、he future.Through our investment in Inkai,we were impacted by the 20%supply reduction enacted by Kazatomprom(KAP)across all uranium mines in Kazakhstan and the continued supply chain challenges it has faced.As well,delivery of our share of 2023 production from JV Inkai was delayed due to the challen

201、ges of transporting uranium via an alternate route that does not rely on Russian rail lines or ports.The first shipment,containing approximately two thirds of our share of Inkais 2023 production,arrived in the fourth quarter.The second shipment with the remainder of our share of 2023 production has

202、arrived at a Canadian port.Cameco has 35 years of experience in this market,and we have designed our strategy of full-cycle value capture to be resilient.Given the nature of our contracts,we have good visibility into when and where we need to deliver material,and we have put in place a number of too

203、ls that allow us to self-manage risk.We have built a strong reputation as a proven and reliable supplier with a diversified production portfolio,that provides us with the flexibility to work with our customers to ensure they maintain access to our reliable supplies to satisfy their ongoing fuel requ

204、irements.In addition to our production,we can source material from market purchases today,and while these purchases would be more expensive than our production,our strategy positions us to benefit from added demand for nuclear fuel supplies and services.We have exposure to higher prices under the ma

205、rket-related contracts in our long-term portfolio and a pipeline of contracting discussions underway,which we expect will also benefit from the increased focus on securing access to scarce supplies and generate long-term value for Cameco.Also,we do not have to buy every pound in the spot market.We c

206、an source from inventory,to be replaced by production or purchases later.Further,we have the ability to pull forward long-term purchase arrangements that we put in place in a much lower-price environment,and with licensed storage facilities,we have secured the ability to borrow product under the ter

207、ms of some of our storage agreements.Global production shortfalls and transportation challenges in 2023 further highlighted the growing security of supply risk at a time when we believe the demand outlook is stronger and more durable than ever,with 28 countries around the world committing to triple

208、nuclear power capacity by 2050.In this environment,uncertainty about where nuclear fuel supplies will come from to satisfy growing demand continues to drive long-term contracting as risk shifts from producers to utilities.We delivered 32 million pounds of uranium and 12 million kgU in our fuel servi

209、ces segment to our customers in alignment with our contract portfolio and profitable opportunities in the market.We generated$688 million in cash from operations,with 18 CAMECO CORPORATION higher sales volumes and higher average realized prices in both our uranium and fuel services segments than in

210、2022.To meet our sales commitments and maintain a working inventory we purchased 11.3 million pounds of uranium at an average cost of$59.42(US)per pound.While the unit cost of our purchases is significantly higher than the average production costs at McArthur River/Key Lake and Cigar Lake in 2023,we

211、 benefit from higher prices under the market-related portion of our long-term contract portfolio and higher prices benefit the pounds we have under negotiation.See 2023 financial results by segment Uranium starting on page 61 for more information.Thanks to our disciplined strategy,our balance sheet

212、is strong,and we expect it will enable us to continue executing our strategy as well as to self-manage risk,including from global macro-economic uncertainty and volatility.As of December 31,2023,we had$567 million in cash and cash equivalents with$1.8 billion in total debt.In addition,we have a$1.0

213、billion undrawn credit facility.On November 7,2023,we announced the closing of the acquisition ofWestinghouse Electric Company(Westinghouse)in a strategic partnership with Brookfield Asset Management alongside its publicly listed affiliate Brookfield Renewable Partners(Brookfield)and institutional p

214、artners.Cameco now owns a 49%interest and Brookfield owns the remaining 51%in Westinghouse.We believe bringing together our expertise in the nuclear industry with Brookfields expertise in clean energy positions nuclear power at the heart of the clean energy transition and creates a powerful platform

215、 for strategic growth across the nuclear sector.See Westinghouse Electric Company beginning on page 94 for more information.In the current environment,we believe the risk to uranium supply is greater than the risk to uranium demand and expect it will create a renewed focus on ensuring availability o

216、f long-term supply to fuel nuclear reactors.With the improvements in the market and to help meet our sales commitments,we plan to produce 18 million pounds(100%basis)at each of McArthur River/Key Lake and Cigar Lake in 2024.Based on KAPs announcement on February 1,2024,production in Kazakhstan is ex

217、pected to remain 20%below the level stipulated in subsoil use agreements,similar to in 2023,primarily due to the sulfuric acid shortage in the country.We are still in discussions with JV Inkai and KAP to determine how this may impact production at Inkai in 2024 and thereafter and therefore our corre

218、sponding purchase obligation.We also plan to begin the work necessary to extend the mine life at Cigar Lake to 2036,subject to approval of Oranos board,which we expect will be granted in the first quarter of 2024.In addition,at McArthur River/Key Lake,we plan to undertake an evaluation of the work a

219、nd investment necessary to expand production up to its annual licensed capacity of 25 million pounds(100%basis),which we expect will allow us to take advantage of this opportunity when the time is right.See Uranium Tier-one operations starting on page 73 for more information.If we took advantage of

220、all of the tier-one expansion opportunities available to us,our annual share of tier-one supply could be about 32 million pounds.However,we will continue to align our production with our contract portfolio and market opportunities,demonstrating that we continue to responsibly manage our supply in ac

221、cordance with our customers needs.In addition to our uranium production,at our Port Hope UF6 conversion facility we plan to produce 12,000 tonnes in 2024 to satisfy our book of long-term business and demand for conversion services,at a time when conversion prices are at historic highs.We will contin

222、ue to look for opportunities to improve operational effectiveness,to improve our safety performance and reduce our impact on the environment,including through the use of digital and automation technologies to allow us to operate our assets with more flexibility and efficiency.This is key to our abil

223、ity to continue to align our production decisions with our contract portfolio commitments and opportunities.With a solid base of contracts to underpin our productive capacity,and a growing contracting pipeline we plan to return to our tier-one cost structure,which we expect will generate strong fina

224、ncial performance.As we execute on our strategy,we will continue to focus on protecting the health and safety of our employees,delivering our products safely and responsibly and addressing the ESG risks and opportunities that we believe will make our business sustainable and will build long-term val

225、ue.MANAGEMENTS DISCUSSION AND ANALYSIS 19 Financial performance HIGHLIGHTS DECEMBER 31($MILLIONS EXCEPT WHERE INDICATED)2023 2022 CHANGE Revenue 2,588 1,868 39%Gross profit 562 233 100%Net earnings attributable to equity holders 361 89 100%$per common share(diluted)0.83 0.22 100%Adjusted net earning

226、s(non-IFRS,see page 41)339 135 100%$per common share(adjusted and diluted)0.78 0.33 100%Adjusted EBITDA(non-IFRS,see page 41)831 431 93%Cash provided by operations 688 305 100%Net earnings attributable to equity holders(net earnings)and adjusted net earnings in 2023 significantly outperformed 2022.S

227、ee 2023 consolidated financial results beginning on page 39 for more information.Of note:generated$688 million in cash from operations received refund of$297 million from CRA,consisting of cash in the amount of$86 million and letters of credit in the amount of$211 million.Also,received$12 million fr

228、om CRA for disbursements related to the September 2018 Tax Court decision and cost award.See Transfer pricing dispute on page 46 for more information.received a cash dividend of$79 million(US),net of withholdings,from JV Inkai completed acquisition of 49%interest in Westinghouse for a$2.1 billion(US

229、)purchase price.To finance the acquisition,we used$1.5 billion(US)of cash and drew the full amount of both$300 million(US)tranches of the term loan put in place concurrently with the execution of the acquisition agreement.See Westinghouse Electric Company starting on page 94 for more information.inc

230、urred$51 million in care and maintenance costs compared to$218 million in care and maintenance and operational readiness costs in 2022 Our segment updates and other fuel cycle investment updates In our uranium segment,we continued to execute our strategy,further ramping up our tier-one assets which

231、had a positive impact on our operations.Of note in 2023,we:delivered 32 million pounds in alignment with the commitments under our contract portfolio and profitable market opportunities produced 15.1 million pounds(100%basis)at Cigar Lake.Production was impacted by delays associated with the first p

232、roduction from a new mining zone and some unplanned maintenance work.produced 13.5 million pounds(100%basis)at McArthur River/Key Lake.Production was impacted by challenges related to length of time the facility was in care and maintenance,the operational changes that were implemented throughout the

233、 mill,aging infrastructure,availability of personnel with the necessary skills and experience,and the impact of supply chain challenges on the availability of materials and reagents.purchased 11.3 million pounds of uranium,including our spot purchases and committed purchase volumes(including JV Inka

234、i purchases)signed major supply agreement to meet Ukraines full nuclear fuel needs through 2035 received 20-year licence renewals from the Canadian Nuclear Safety Commission(CNSC)for McArthur River,Key Lake and a 15-year licence renewal for Rabbit Lake maintained Rabbit Lake and US ISR operations on

235、 care and maintenance In 2023,in our fuel services segment,we:delivered 12.0 million kgU under contract produced 13.3 million kgU received a 20-year licence renewal from the CNSC for Cameco Fuel Manufacturing(CFM).The licence renewal also grants CFMs request for a slight production increase to 1,650

236、 tonnes as UO2 fuel missioned a Closed Loop Cooling Water system at the Port Hope conversion facility,which is expected to provide environmental and operational improvements 20 CAMECO CORPORATION See Operations and projects beginning on page 69 for more information.HIGHLIGHTS 2023 2022 CHANGE Uraniu

237、m Production volume(million lbs)17.6 10.4 69%Sales volume(million lbs)32.0 25.6 25%Average realized price1($US/lb)49.76 44.73 11%($Cdn/lb)67.31 57.85 16%Revenue($millions)2,152 1,480 45%Gross profit($millions)444 121 100%Net earnings attributable to equity holders 606 200 100%Adjusted EBITDA(non-IFR

238、S,see page 41)835 380 100%Fuel services Production volume(million kgU)13.3 13.0 2%Sales volume(million kgU)12.0 11.1 8%Average realized price 2($Cdn/kgU)35.61 32.92 8%Revenue($millions)426 365 17%Gross profit($millions)124 117 6%Net earnings attributable to equity holders 129 120 8%Adjusted EBITDA(n

239、on-IFRS,see page 41)164 153 7%Westinghouse Revenue 521-(our share)Net loss attributable to equity holders (24)-Adjusted EBITDA(non-IFRS,see page 41)101-1 Uranium average realized price is calculated as the revenue from sales of uranium concentrate,transportation and storage fees divided by the volum

240、e of uranium concentrates sold.2 Fuel services average realized price is calculated as revenue from the sale of conversion and fabrication services,including fuel bundles and reactor components,transportation and storage fees divided by the volumes sold.Industry prices 2023 2022 CHANGE Uranium($US/l

241、b U3O8)1 Average annual spot market price 62.51 49.81 25%Average annual long-term price 58.20 49.75 17%Fuel services($US/kgU as UF6)1 Average annual spot market price North America 41.23 31.96 29%Europe 41.23 31.96 29%Average annual long-term price North America 30.55 24.75 23%Europe 30.55 24.94 22%

242、Note:the industry does not publish UO2 prices.1 Average of prices reported by TradeTech and UxC,LLC(UxC)On the spot market,where purchases call for delivery within one year,the volume reported by UxC for 2023 decreased to 55 million pounds U3O8 equivalent,compared to 62 million pounds U3O8 equivalen

243、t in 2022.In 2023,total spot purchases by producers,junior uranium companies,financial funds and intermediaries was approximately 42 million pounds U3O8 equivalent,compared to approximately 53 million pounds U3O8 equivalent in 2022;in 2023,these purchases represented over 75%of spot market purchases

244、 compared to over 85%in 2022.At the end of 2023,the average reported spot price was$91.00(US)per pound,up$43.33(US)per pound from the end of 2022.During the year,the uranium spot price ranged from a month-end low of$50.48(US)per pound to a month-end high of$91.00(US)per pound,averaging$62.51(US)for

245、the year.Long-term contracts generally call for deliveries to begin more than two years after the contract is finalized,and use a number of pricing formulas,including base-escalated prices set at time of contracting and escalated over the term of the contract,and market referenced prices(spot and lo

246、ng-term indicators)determined near the time of delivery,which also often include floor MANAGEMENTS DISCUSSION AND ANALYSIS 21 prices and ceiling prices that are also escalated to time of delivery.The volume of long-term contracting reported by UxC for 2023 was about 160 million pounds U3O8 equivalen

247、t,up from about 125 million pounds U3O8 equivalent in 2022,including two contracts that combined totaled over 60 million pounds.Higher volumes can largely be attributed to utilities turning their attention to securing their long-term fuel needs to support the durable growth in demand for nuclear pow

248、er and in light of the growing uncertainty of supply driven by heightened geopolitical tensions,and ongoing production challenges.The average reported long-term price at the end of the year was$68.00(US)per pound,up$16.00(US)from the end of 2022.During the year,the uranium long-term price steadily i

249、ncreased from a month-end low of$52.50(US)per pound in January to a high of$68.00(US)per pound in December,averaging$58.20(US)for the year.Since the Russian invasion of Ukraine in February 2022,conversion prices in both the North American and European markets have continued to increase.At the end of

250、 2023,the average reported spot price for North American delivery reached a record high of$46.00(US)per kilogram uranium as UF6(US/kgU as UF6),up$6.00(US)from the end of 2022.Long-term UF6 conversion prices for North American delivery finished 2023 at$34.25(US/kgU as UF6),up$7.00(US)from the end of

251、2022.$0$10$20$30$40$50$60$70$80$90$1002017201820192020202120222023Source:Average of prices reported from TradeTech and UxCURANIUM(US$/lb U3O8)AND CONVERSION(US$/kgU UF6)PRICESSpot uranium priceLong-term uranium priceSpot conversion price(North America)Long-term conversion price(North America)22 CAME

252、CO CORPORATION Our vision,values and strategy Our vision Our vision “Energizing a clean-air world”recognizes that we have an important role to play in enabling the vast reductions in global GHG emissions required to achieve a resilient net-zero carbon economy.We support climate action that is consis

253、tent with the ambition of the Paris Agreement and the Canadian governments corresponding commitment to limit global temperature rise to less than 2C.We believe that this means the world needs to reach net-zero emissions by 2050 or sooner.The uranium we produce is used around the world in the generat

254、ion of safe,carbon-free,affordable,base-load nuclear power.We believe we have the right strategy to achieve our vision and we will do so in a manner that reflects our values.For 35 years,we have been delivering our products responsibly.Building on that strong foundation,we remain committed to our ef

255、forts to reduce our own,already low,greenhouse gas footprint in our ambition to reach net-zero emissions,while identifying and addressing the ESG risks and opportunities that we believe may have a significant impact on our ability to add long-term value for our stakeholders.Committed to our values O

256、ur values are discussed below.They define who we are as a company,are at the core of everything we do and help to embed ESG principles and practices as we execute on our strategy in pursuit of our vision.They are:safety and environment people integrity excellence SAFETY AND ENVIRONMENT The safety of

257、 people and protection of the environment are the foundations of our work.All of us share in the responsibility of continually improving the safety of our workplace and the quality of our environment.We are committed to keeping people safe and conducting our business with respect and care for both t

258、he local and global environment.PEOPLE We value the contribution of every employee,and we treat people fairly by demonstrating our respect for individual dignity,creativity and cultural diversity.By being open and honest,we achieve the strong relationships we seek.We are committed to developing and

259、supporting a flexible,skilled,stable and diverse workforce,in an environment that:attracts and retains talented people and inspires them to be fully productive and engaged encourages relationships that build the trust,credibility and support we need to grow our business INTEGRITY Through personal an

260、d professional integrity,we lead by example,earn trust,honour our commitments and conduct our business ethically.We are committed to acting with integrity in every area of our business,wherever we operate.EXCELLENCE We pursue excellence in all that we do.Through leadership,collaboration and innovati

261、on,we strive to achieve our full potential and inspire others to reach theirs.MANAGEMENTS DISCUSSION AND ANALYSIS 23 Our strategy We are a pure-play investment in the growing demand for nuclear energy,focused on taking advantage of the near-,medium-,and long-term growth occurring in our industry.We

262、provide nuclear fuel and nuclear power products,services,and technologies across the fuel cycle,augmented by our investment in Westinghouse,that support the generation of clean,reliable,secure,and affordable energy.Our strategy is set within the context of what we believe is a transitioning market e

263、nvironment.Increasing populations,a growing focus on electrification and decarbonization,and concerns about energy security and affordability are driving a global focus on tripling nuclear power capacity by 2050,which is expected to durably strengthen the long-term fundamentals for our industry.Nucl

264、ear energy must be a central part of the solution to the worlds shift to a low-carbon,climate resilient economy.It is an option that can provide the power needed,not only reliably,but also safely and affordably,and in a way that will help avoid some of the worst consequences of climate change.Our st

265、rategy is to capture full-cycle value by:remaining disciplined in our contracting activity,building a balanced portfolio in accordance with our contracting framework profitably producing from our tier-one assets and aligning our production decisions in all segments of the fuel cycle with contracted

266、demand and customer needs being financially disciplined to allow us to:o execute our strategy o invest in new opportunities that are expected to add long-term value o to self-manage risk exploring other emerging opportunities within the nuclear power value chain,which align with our commitment to ma

267、nage our business responsibly and sustainably,contribute to decarbonization,and help to provide secure and affordable energy We expect our strategy will allow us to increase long-term value,and we will execute it with an emphasis on safety,people and the environment.URANIUM Uranium production is cen

268、tral to our strategy,as it is the biggest value driver of the nuclear fuel cycle and our business.We have tier-one assets that are licensed,permitted,long-lived,and are proven reliable with capacity to expand.These tier-one assets are backed up by idle tier-two assets and what we think is the best e

269、xploration portfolio of mineral reserves and resources that in some cases can leverage our existing infrastructure.Currently,we believe that we have ample productive capacity with the ability to expand as the demand for nuclear energy and nuclear fuel grows.We are focused on protecting and extending

270、 the value of our contract portfolio,on aligning our production decisions with our contract portfolio and market opportunities thereby optimizing the value of our lowest cost assets.We also prioritize maintaining a strong balance sheet,and on efficiently managing the company.We have undertaken a num

271、ber of deliberate and disciplined actions,including a focus on operational effectiveness to allow us to operate our assets more efficiently and with more flexibility.FUEL SERVICES Our fuel services segment supports our strategy to capture full-cycle value by providing our customers with access to re

272、fining and conversion services for both heavy-water and light-water reactors,and CANDU fuel and reactor component manufacturing for heavy-water reactors.As in our uranium segment,we are focused on securing new long-term contracts and on aligning our production decisions with our contract portfolio t

273、hat will allow us to continue to profitably produce and consistently support the long-term needs of our customers.In addition,we are pursuing non-traditional markets for our UO2 and fuel fabrication business and have been actively securing new contracts for reactor components to support refurbishmen

274、t of Canadian reactors.WESTINGHOUSE In 2023,we completed the acquisition of Westinghouse,a global provider of missioncritical and specialized technologies,products and services for light-water reactors across most phases of the nuclear power sector,in a strategic partnership with Brookfield.We own a

275、 49%interest in Westinghouse.24 CAMECO CORPORATION We are enhancing our ability to compete for more business by investing in additional nuclear fuel cycle assets that we expect will augment the core of our business and offer more solutions to our customers across the nuclear fuel cycle.Like Cameco,W

276、estinghouse has nuclear assets that are strategic,proven,licensed and permitted,and that are in geopolitically attractive jurisdictions.We expect these assets,like ours,will participate in the growing demand profile for nuclear energy.Westinghouse has a stable and predictable core business generatin

277、g durable cash flows.Like Cameco,Westinghouse has a long-term contract portfolio,which we believe positions it well to compete for growing demand for new nuclear reactors and reactor services,as well as the fuel supplies and services needed to keep the global reactor fleet operating safely and relia

278、bly.This strong base of business also helps protect Westinghouse from macro-economic headwinds as utility customers run their critical nuclear power plants.Its durable and growing business is expected to allow Westinghouse to self-fund its approved annual operating budget,to service its annual finan

279、cial obligations from de-risked cash flows,and to pay annual distributions to its owners.See Westinghouse starting on page 94 for more information.OTHER NUCLEAR FUEL CYCLE INVESTMENTS We continually evaluate investment opportunities within the nuclear fuel value chain,which align well with our commi

280、tment to manage our business responsibly and sustainably,increase our contributions to decarbonization and help provide energy security.Expanding our participation in the fuel cycle is expected to complement our tier-one uranium and fuel services assets,creating new revenue opportunities,and it enha

281、nces our ability to meet the increasing needs of existing and new customers for secure,reliable nuclear fuel supplies,services and technologies.In particular,we are interested in the second largest value driver of the fuel cycle,enrichment,and have a 49%interest in Global Laser Enrichment LLC(GLE).G

282、LE is the exclusive licensee of the proprietary SILEX laser enrichment technology,a third-generation uranium enrichment technology.We are the commercial lead for the GLE project with an option to attain a majority interest of up to 75%ownership.See Global Laser Enrichment starting on page 99 for mor

283、e information.Additionally,we have signed a number of non-binding arrangements to explore several areas of cooperation to advance the commercialization and deployment of small modular reactors in Canada and around the world.We will make an investment decision when an opportunity is available at the

284、right time and the right price.We strive to pursue corporate development initiatives that will leave us and our stakeholders in a fundamentally stronger position.As such,an investment opportunity is never assessed in isolation.Investments must compete for investment capital with our own internal gro

285、wth opportunities.They are subject to our capital allocation process described under Capital Allocation Focus on Value,starting on page 30.BUILDING A BALANCED PORTFOLIO The purpose of our contracting framework is to deliver value.Our approach is to secure a solid base of earnings and cash flow by ma

286、intaining a balanced contract portfolio that optimizes our realized price.Contracting decisions in all segments of our business need to consider the nuclear fuel market structure,the nature of our competitors,and the current market environment.The vast majority of run-rate fuel requirements are proc

287、ured under long-term contracts.The spot market is thinly-traded where utilities buy small,discretionary volumes.This market structure is reflective of the baseload nature of nuclear power and the relatively small proportion of the overall operating costs the fuel represents compared to other sources

288、 of baseload electricity.Additionally,about half of the fuel supply typically comes from diversified mining companies that produce uranium as a by-product,or by state-owned entities with production volume strategies or ambitions to serve state nuclear power ambitions with low-cost fuel supplies.We e

289、valuate our strategy in the context of our market environment and continue to adjust our actions in accordance with our contracting framework:First,we build a long-term contract portfolio by layering in volumes over time.In addition to our committed sales,we will compete for customer demand in the m

290、arket where we think we can obtain value and,in general,as part of longer-term contracts.We will take advantage of opportunities the market provides,where it makes sense from an economic,logistical,diversification and strategic point of view.Those opportunities may come in the form of spot,mid-term

291、or long-term demand,and will be additive to our current committed sales.As we build our portfolio of long-term contracts,we decide how to best source material to satisfy that demand,planning our production in accordance with our contract portfolio and other available sources of supply.We will not pr

292、oduce from our tier-one assets to sell into an oversupplied spot market.MANAGEMENTS DISCUSSION AND ANALYSIS 25 We do not intend to build an inventory of excess uranium.Excess inventory serves to contribute to the sense that uranium is abundant and creates an overhang on the market,and it ties up wor

293、king capital on our balance sheet.Depending on the timing and volume of our production,purchase commitments,and our inventory volumes,we may be active buyers in the market in order to meet our annual delivery commitments.Historically,prior to the supply curtailments that we began in 2016,we have gen

294、erally planned our annual delivery commitments to slightly exceed the annual supply we expect to come from our annual production and our long-term purchase commitments and have therefore relied on the spot market to meet a small portion of our delivery commitments.In general,if we choose to purchase

295、 material to meet demand,we expect the cost of that material will be more than offset by the volume of commitments in our sales portfolio that are exposed to market prices at the time of delivery over the long-term.In addition to this framework,our contracting decisions always factor in who the cust

296、omer is,our desire for regional diversification,the product form,and logistical factors.Ultimately,our goal is to protect and extend the value of our contract portfolio on terms that recognize the value of our assets,including future development projects,and pricing mechanisms that provide adequate

297、protection when prices go down and exposure to rising prices.We believe using this framework will allow us to create long-term value.Our focus will continue to be on ensuring we have the financial capacity to execute on our strategy and self-manage risk.LONG-TERM CONTRACTING Uranium is not traded in

298、 meaningful quantities on a commodity exchange.Utilities have historically bought the majority of their uranium and fuel services products under long-term contracts that are bilaterally negotiated with suppliers.The spot market is discretionary and typically used for one-time volumes,not to satisfy

299、annual demand.We sell uranium and fuel products and services directly to nuclear utilities around the world as uranium concentrates,UO2 and UF6,conversion services,or fuel fabrication and reactor components for CANDU heavy water reactors.We have a solid portfolio of long-term sales contracts that re

300、flect our reputation as a proven,reliable supplier of geographically stable supply,and the long-term relationships we have built with our customers.In general,we are active in the market,buying and selling uranium when it is beneficial for us and in support of our long-term contract portfolio.We und

301、ertake activity in the spot and term markets prudently,looking at the prices and other business factors to decide whether it is appropriate to purchase or sell into the spot or term market.Not only is this activity a source of profit,but it also gives us insight into underlying market fundamentals.W

302、e deliver the majority of our uranium under long-term contracts each year,some of which are tied to market-related pricing mechanisms quoted at time of delivery.Therefore,our net earnings and operating cash flows are generally affected by changes in the uranium price.Market prices are influenced by

303、the fundamentals of supply and demand,market access and trade policy issues,geopolitical events,disruptions in planned supply and demand,and other market factors.The objectives of our contracting strategy are to:optimize realized price by balancing exposure to future market prices while providing so

304、me certainty for our future earnings and cash flow focus on meeting the nuclear industrys growing annual uncovered requirements with our tier-one production establish and grow market share with strategic and regionally diverse customers We have a portfolio of long-term contracts,each bilaterally neg

305、otiated with customers,that have a mix of base-escalated pricing and market-related pricing mechanisms,including provisions that provide exposure to rising market prices and also protect us when the market price is declining.This is a balanced and flexible approach that allows us to adapt to market

306、conditions,put a floor on our average realized price and deliver the best value over the long term.This approach has allowed our realized price to outperform the market during periods of weak uranium demand,and we expect it will enable us to realize increases linked to higher market prices in the fu

307、ture.Base-escalated contracts for uranium:use a pricing mechanism based on a term-price indicator at the time the contract is accepted and escalated to time of each delivery over the term of the contract.26 CAMECO CORPORATION Market-related contracts for uranium:are different from base-escalated con

308、tracts in that the pricing mechanism may be based on either the spot price or the long-term price,and that price is generally set a month or more prior to delivery rather than at the time the contract is accepted.These contracts may provide for discounts,and typically include floor prices and/or cei

309、ling prices,which are established at time of contract acceptance and usually escalate over the term of the contract.Fuel services contracts:the majority of our fuel services contracts use a base-escalated mechanism per kgU and reflect the market at the time the contract is accepted.OPTIMIZING OUR CO

310、NTRACT PORTFOLIO We work with our customers to optimize the value of our contract portfolio.With respect to new contracting activity,there is often a lag from when contracting discussions begin and when contracts are executed.With our large pipeline of business under negotiation in our uranium segme

311、nt,and a value driven strategy,we continue to be strategically patient in considering the commercial terms we are willing to accept.We layer in contracts over time,with higher commitments in the near term and declining over time in accordance with utilities growing uncovered requirements.Demand may

312、come in the form of off-market negotiations or through on-market requests for proposals.We remain confident that we can add acceptable new sales commitments to our portfolio of long-term contracts to underpin the ongoing operation of our productive capacity and capture long-term value.Given our view

313、 that additional long-term supply will need to be incented to meet the growing demand for safe,clean,reliable,carbon-free nuclear energy,our preference today is to sign long-term contracts with market-related pricing mechanisms.However,we believe our customers expect prices to rise and prefer to loc

314、k-in todays prices,with a fixed-price mechanism.Our goal is to balance all these factors,along with our desire for customer and regional diversification,with product form,and logistical factors to ensure we have adequate protection and will have exposure to rising market prices under our contract po

315、rtfolio,while maintaining the benefits that come from having low-cost supply to deliver into a strengthening market.With respect to our existing contracts,at times we may also look for opportunities to optimize the value of our portfolio.In cases where there is a changing policy,operating,or economi

316、c environment,we may consider adjusting our contracts in a manner that allow us to maintain our customer relationships and is mutually beneficial.CONTRACT PORTFOLIO STATUS We have executed contracts to sell approximately 205 million pounds of U3O8 with 37 customers worldwide in our uranium segment,a

317、nd over 75 million kilograms as UF6 conversion with 33 customers worldwide in our fuel services segment.Customers U3O8:Five largest customers account for 62%of commitments Asia 16%Europe 26%Americas 58%COMMITTED U3O8SALES BY REGION MANAGEMENTS DISCUSSION AND ANALYSIS 27 Customers UF6 conversion:Five

318、 largest customers account for 64%of commitments MANAGING OUR CONTRACT COMMITMENTS We allow sales volumes to vary year-to-year depending on:the level of sales commitments in our long-term contract portfolio market opportunities our sources of supply To meet our delivery commitments and to mitigate r

319、isk,we have access to a number of sources of supply,which includes uranium obtained from:our productive capacity purchases under our JV Inkai agreement,under long-term agreements and in the spot market our inventory in excess of our working requirements product loans OUR SUPPLY DISCIPLINE As spot is

320、 not the fundamental market,true value is built under a long-term contract portfolio and is measured over the full commodity cycle.Therefore,we align our uranium production decisions with our contract commitments and market opportunities to avoid carrying excess inventory or having to sell into an o

321、versupplied spot market.In accordance with market conditions,and to mitigate risk,we evaluate the optimal mix of our production,inventory and purchases in order to satisfy our contractual commitments and in order to realize the best return over the entire commodity cycle.During a prolonged period of

322、 uncertainty,this could mean leaving our uranium in the ground.For the years 2016 through 2022,we left more than 130 million pounds of uranium in the ground(100%basis)by curtailing our production.We purchased more than 60 million pounds including spot and long-term purchases and in 2018 we drew down

323、 our inventory by almost 20 million pounds.That totals over 210 million pounds(100%basis)of uranium that were not available to the market.However,today we believe the uranium market is in transition,driven by the growing demand for nuclear energy and the increasing recognition that it is essential t

324、o the clean-energy transition and to energy security.As the market continues to transition,we expect to continue placing our uranium under long-term contracts and meet rising demand with production from our best margin operations.Asia 5%Europe 45%Americas 50%COMMITTED UF6SALES BY REGION 28 CAMECO CO

325、RPORATION With the improvements in the market,the new long-term contracts we have put in place,and a pipeline of contracting discussions,we plan to produce 18 million pounds(100%basis)at McArthur River/Key Lake and Cigar Lake in 2024.Based on KAPs announcement on February 1,2024,production in Kazakh

326、stan is expected to remain 20%below the level stipulated in subsoil use agreements,similar to in 2023,primarily due to the sulfuric acid shortage in the country.We are still in discussions with JV Inkai and KAP to determine how this may impact production at Inkai in 2024 and thereafter and therefore

327、 our corresponding purchase obligation.We also plan to begin the work necessary to extend the mine life at Cigar Lake subject to approval of Oranos board.In addition,we plan to undertake the evaluation of the work and investment necessary to expand production at McArthur River/Key Lake up to its ann

328、ual licensed capacity of 25 million pounds,which we expect will allow us to take advantage of this opportunity when the time is right.Our production decisions will continue to be aligned with market opportunities and our ability to secure the appropriate long-term contract homes for our unencumbered

329、,in-ground inventory,demonstrating that we continue to responsibly manage our assets in accordance with our customers needs.In addition to our uranium production plans,we plan to produce 12,000 tonnes at our Port Hope UF6 conversion facility in 2024 to satisfy our book of long-term business for conv

330、ersion services and customer demand,at a time when conversion prices are at historic highs.Our production plans for McArthur River/Key Lake and Cigar Lake are expected to generate strong financial performance by allowing us to source more of our committed sales from the lower-cost produced pounds.In

331、 addition,with conversion demand elevated,we have been successful in securing long-term sales commitments that will support increased UF6 production at Port Hope,which is expected to further improve its contribution to our financial results.However,this is not an end to our supply discipline.We expe

332、ct to continue to adjust our production in accordance with our contract portfolio.This will remain our production plan until we see further improvements in the uranium market and contracting progress,once again demonstrating that we are a responsible fuel supplier.MANAGING OUR COSTS Production costs

333、 In order to operate efficiently and cost-effectively,we manage operating costs and improve plant reliability by prudently investing in production infrastructure,new technology,and business process improvements.Like all mining companies,our uranium segment is affected by the cost of inputs such as labour and fuel.*Production supplies include reagents,fuel and other items.Contracted services includ